Did the Centre Sign a Rs 2,312 Crore Contract with HAL for 8 Dornier 228 Aircraft?
Synopsis
On February 12, the Defence Ministry signed a significant contract with HAL, acquiring eight Dornier 228 aircraft for the Indian Coast Guard, valued at Rs 2,312 crore. This deal is set to enhance India's maritime security and bolster local employment.
Key Takeaways
Contract value: Rs 2,312 crore for eight Dornier 228 aircraft.
Employment generation: Significant job opportunities anticipated.
Maritime security: Strengthening India's coastal defense capabilities.
Collaboration: HAL to work with private firms for enhanced production.
New Delhi, Feb 12 (NationPress) The Ministry of Defence has officially finalized a contract with Hindustan Aeronautics Limited (HAL) for the procurement of eight Dornier 228 aircraft along with essential operational role equipment for the Indian Coast Guard (ICG) valued at Rs 2,312 crore.
This order is anticipated to create substantial direct and indirect employment opportunities by enhancing HAL's production ecosystem and providing support to a wide array of MSMEs and ancillary industries.
Furthermore, it will lead to ongoing opportunities in Maintenance, Repair & Overhaul and life cycle technical support, as stated in an official announcement.
This contract was signed under the Buy (Indian) initiative, in the presence of Defence Secretary Rajesh Kumar Singh. It reinforces the government's dedication to Aatmanirbhar Bharat and the ‘Make in India’ initiative while fortifying India’s maritime security framework.
On the same day, HAL declared robust financial results for the December quarter of the current financial year (Q3 FY26), with a remarkable 29.6 percent year-on-year increase in consolidated net profit. The profit after tax for this quarter reached Rs 1,866.66 crore, up from Rs 1,439.79 crore during the corresponding period of the previous financial year (Q3 FY25), as per an exchange filing.
Meanwhile, India is preparing to significantly boost its aerospace aspirations with a colossal investment of approximately Rs 65,400 crore ($7.44 billion) aimed at developing and producing fighter jet engines by 2035. This initiative is designed to make India self-sufficient in one of the most crucial aspects of defence – aircraft propulsion, according to various reports.
This project symbolizes a significant stride towards diminishing reliance on imports and crafting engines capable of powering the next generation of Indian fighter jets. From the advanced Tejas Mk2 to the stealthy AMCA, and from upgraded fighters to unmanned aircraft, India aims to manufacture around 1,100 engines over the next decade.
For the first time, India is inviting private enterprises to engage in fighter jet development, opening up new avenues for innovation and growth within the aerospace sector. Hindustan Aeronautics Limited (HAL) will collaborate with private and global entities to distribute the workload and enhance production.
Point of View
I firmly believe this contract is a pivotal step towards strengthening India's defence capabilities while promoting self-reliance. The collaboration with HAL is a testament to our commitment to support domestic industries and enhance national security.
NationPress
29 Jun 2026
Frequently Asked Questions
What is the value of the contract signed with HAL?
The contract signed with Hindustan Aeronautics Limited is valued at Rs 2,312 crore.
How many Dornier 228 aircraft are being acquired?
The Defence Ministry is acquiring eight Dornier 228 aircraft for the Indian Coast Guard.
What will this contract contribute to?
This contract is expected to generate significant employment opportunities and strengthen India's maritime security.
Who signed the contract?
The contract was signed in the presence of Defence Secretary Rajesh Kumar Singh.
